Rapture #282: Real Institutional Adoption, HK Becoming a Crypto Hub, and Pendle Moons

Been a minute. I just got back from a long trip across the Dakotas, Montana, Utah, Wyoming and more. If you have not yet been out to the classic west of the USA (California does not count), I highly recommend it. Yellowstone is a national treasure and I have never seen anything like the Badlands of South Dakota.

While I was gone, many major items hit the press that further cements two emergent themes of this bull market: institutional adoption and China's embrace of crypto. Additionally, Pendle has been on an absolute tear.

Everyone wants an ETF

Recently, BlackRock, the world's largest asset manager, filed to create a Bitcoin ETF, with Coinbase listed as the custodian for the BTC that will back the ETF. Nearly all of the podcasts, news providers, and influencers have been discussing this particular piece of information non-stop. Furthermore, Larry Fink, the CEO of BlackRock, even went on Fox Business talking about the positives of Bitcoin.

This filing is unlike the many others that have been dropped on the SEC's desk in the past few years because of BlackRock's clout and their incredible 575-1 record of getting ETFs approved.

I believe we will know by February of next year at the latest if their ETF is approved, though there is a significant chance we hear back sooner.

After BlackRock filed an ETF for Bitcoin, Fidelity refiled their Bitcoin ETF application and other issuers announced renewed interest in getting their ETF application approved.

Big news. Doesn't get more institutional adoptiony than BlackRock filing for a Bitcoin ETF.

Hong Kong racing ahead as crypto hub

As I have discussed all year, China is pushing forward in embracing crypto through many initiatives, including positioning Hong Kong as the preeminent crypto hub. In fact, HSBC in Hong Kong now allows for the trading of Bitcoin and Ether ETFs.

Furthermore, there have been proposals for Hong Kong to issue a stablecoin pegged to the HKD that would compete with USDT and USDC.

Finally, the Hong Kong government will formally set up a Web3 development task force that focuses on promoting growth in Web3. This task force will be comprised of 11 government officials and 15 industry participants. Hong Kong's financial secretary Paul Chan will also be a part of the task force.

Clearly, Hong Kong is racing ahead and positioning itself as the new emergent institutional hub for crypto.

Pendle going crazy

I started writing about Pendle in Rapture #265, which was published on January 18th. Since then, price has more than 10xed. Major crypto developers and publishers, from Zaki Manian to The Defiant, are now also covering the project.

Pendle's TVL stands at a whopping $172.5 million and is growing parabolically week over week.

First big winner of the bull feels good. Of course, my initial size was too small. Still, I don't think by any means Pendle's adoption is close to being over, meaning I think I will be able to squeeze more juice out of this pick.

Huge shout out to Hercc, who flagged Pendle to me.

Disclaimer:

The Content on this email is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by Rapture Associates or Mattison Asher or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Rapture Associates, Mattison Asher, and its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.